CBRE’s Steven Beyda & Savills’ Adam Petrillo Talk Cold Storage in NJ: “We’re Sorely Underbuilt…and Development is a Challenge”

JERSEY CITY, NJ – CAPRE’s I-REV December 10th in Jersey City dove deep into every aspect of the New Jersey industrial sector, and that included an exploration of one sector that is  burgeoning in the Garden State – cold storage. “Industrial End-User Special Focus: Cold Storage Sector” featured Steven I. Beyda, First Vice President at CBRE, Inc. & Adam Petrillo, Head of Industrial Services Group & Senior Managing Director, Savills North America offering two complementary perspectives on this vertical. The session kicked off with a straightforward question – what is the state of cold storage in the region? “Well, it hasn’t really been full addressed in New Jersey,” offered Beyda. He then broke the industry down into three sectors – manufacturing, warehouse distribution, and packaging. “That can be considered Meal Kit programs, like Hello Fresh & Blue Apron. Uses like that have very specific designs and operations, but they’re all servicing the food industry. With the density that NYC has, it’s becoming increasingly important. Food has always traditionally lagged the e-commerce sector.” “The interesting thing is that here are three of four different types of cold space,” offered Petrillo. “And different users have different needs. There’s food and e-commerce but there’s also pharma and bio-tech. So it becomes increasingly difficult to create speculative facilities to address that demand. We’re near critical mass for cold storage between Philadelphia and New York City. And it’s difficult to get a straightforward number on…